Marianne Sar
TU Vienna
2024
📚 Context and Purpose The master's thesis titled "S in ESG: Assessment of Social Sustainability in Real Estate - Critical Analysis of Social Taxonomy and Limitations of Certification Systems" was authored by Marianne Sar and submitted in February 2024 to a university in Vienna, Austria. The study focuses on the crucial aspect of social sustainability within the real estate sector, particularly commercial properties, analyzing how these social factors are integrated into existing ESG (Environmental, Social, and Governance) frameworks. It highlights the increasing recognition of social aspects in sustainability discussions, contrasting this with the prevailing focus on environmental factors. 🔍 Key Findings The research centers on the EU Social Taxonomy proposal, which delineates three principal stakeholder groups: employees, users/consumers, and communities/society. It sets forth three core objectives: promoting decent work, ensuring adequate living standards and wellbeing, and fostering inclusive communities. Notably, the social taxonomy framework deviates from environmental taxonomy by relying more heavily on traditional standards rather than empirical metrics. The thesis critically examines the ÖGNI (Austrian Sustainable Building Council) certification system, revealing that among the 45 criteria established by ÖGNI, only 22 are pertinent to assessing social sustainability. Furthermore, the system addresses just 59% of the 37 sub-objectives outlined in the Social Taxonomy, indicating significant gaps in coverage. The analysis shows that socio-cultural quality criteria align perfectly with the taxonomy, while economic quality criteria exhibit no alignment. ⚠️ Limitations and Recommendations A major conclusion of the study is that existing certification systems fall short of comprehensively addressing social aspects of sustainability. To align fully with the Social Taxonomy, the thesis recommends developing an additional 15 criteria. It suggests incorporating perspectives from other frameworks, such as GRESB and the ICG model, and advocates for more adaptable assessment methods that can cater to diverse contexts and situations. 🌍 Significance This research provides one of the first thorough assessments of how real estate certification systems correspond with the proposed EU Social Taxonomy. It identifies specific gaps while proposing actionable strategies to improve social sustainability assessments in the real estate sector, particularly for commercial properties. By contributing to the ongoing discourse on social sustainability metrics, the thesis emphasizes the need for more standardized methods for measuring and evaluating social impact in the built environment across Europe.
S in ESG: Bewertung sozialer Nachhaltigkeit bei Immobilien - Kritische Bestandsaufnahme der Sozialtaxonomie und Grenzen der Zertifizierungssysteme
TU Vienna
This master's thesis titled "S in ESG: Assessment of Social Sustainability in Real Estate - Critical Analysis of Social Taxonomy and Limitations of Certification Systems" was written by Marianne Sar and submitted in February 2024 at a university in Vienna, Austria.
Context and Purpose
The thesis examines how social sustainability can be identified, measured and evaluated in real estate, with a particular focus on commercial properties. It analyzes the growing importance of social aspects within ESG frameworks while highlighting the current emphasis on environmental factors in the real estate sector.
Key Findings
Social Taxonomy Framework
- The EU Social Taxonomy proposal identifies three main stakeholder groups: employees, users/consumers, and communities/society
- It establishes three primary objectives: promoting decent work, ensuring adequate living standards and wellbeing, and fostering inclusive communities
- The framework differs from environmental taxonomy as it relies more on conventional standards rather than scientific metrics
Certification Systems Analysis
- The study focuses on the ÖGNI (Austrian Sustainable Building Council) certification system
- Out of 45 total ÖGNI criteria, only 22 were found relevant for social sustainability assessment
- The system covers only 59% of the Social Taxonomy's 37 sub-objectives, revealing significant gaps
- Socio-cultural quality criteria showed 100% alignment while economic quality criteria showed zero alignment
Limitations and Recommendations
- Current certification systems lack comprehensive coverage of social aspects
- 15 additional criteria need to be developed to fully align with Social Taxonomy requirements
- The thesis proposes integrating perspectives from other frameworks like GRESB and ICG model
- Suggests more flexible assessment approaches to account for different contexts and situations
Significance
The research provides one of the first comprehensive analyses of how real estate certification systems align with the proposed EU Social Taxonomy. It identifies specific gaps and proposes concrete ways to enhance social sustainability assessment in the real estate sector, particularly for commercial properties.
The thesis contributes to the emerging discussion on social sustainability metrics in real estate while highlighting the need for more standardized approaches to measuring and evaluating social impact in the built environment.